Global Digital Forensics Market Size (2024 – 2030)

The global digital forensics market had an estimated valuation of USD 10.82 Billion in 2023 and is anticipated to achieve USD 23.63 Billion by the conclusion of 2030, displaying a robust Compound Annual Growth Rate (CAGR) of 11.80% over the forecast period spanning from 2024 to 2030.

GLOBAL DIGITAL FORENSICS MARKET

Digital forensics entails the examination, retrieval, interpretation, and revelation of electronic data, commonly employed in information gathering, criminal prosecution across various domains such as financial fraud, theft, and homicide, as well as in preempting and deterring future illicit activities. The core focus of digital forensics lies in the investigation, retrieval, analysis, and extraction of evidence from digital platforms like laptops, desktops, and mobile devices. This practice significantly mitigates sampling risks, facilitates the efficient identification of cyber offenders, ensures data integrity preservation, furnishes evidence for legal proceedings, and facilitates the extraction, processing, and interpretation of factual evidence. Consequently, digital forensics finds extensive applications across sectors such as banking, financial services, and insurance (BFSI), government and law enforcement agencies, as well as the telecommunications and information technology (IT) industry.

Global Digital Forensics Market Drivers:

The escalating incidence of cybercrimes is a primary driver propelling the expansion of the global digital forensics market.

With the widespread adoption of the internet and diverse network-based applications like email platforms, file transfer protocols, and cloud-based technologies, cyber threats and attacks are proliferating rapidly. To counter the escalating menace of cyber threats, pivotal end-user sectors including government and law enforcement, BFSI, IT and communications, among others, are increasingly embracing digital forensics due to its efficacy in facilitating swift and precise investigations.

Moreover, the burgeoning utilization of diverse digital applications, ranging from online banking to email services, is generating a staggering volume of forensic data daily, much of which is stored on cloud platforms. Safeguarding individuals, particularly minors, against online threats and scams has become increasingly challenging. Digital forensics streamlines the collection, processing, preservation, and analysis of computer evidence, especially for legal purposes. Additionally, the decline in prices of forensic equipment is anticipated to bolster the global digital forensics market further.

The proliferation of Internet of Things (IoT) technology is another catalyst driving the expansion of the global digital forensics market.

IoT has engendered heightened demand for wireless data transmission, cloud computing, and remote device monitoring. Unique challenges such as data theft and protection during wireless transmissions are inherent to cloud computing and remote devices. The proliferation of remote working, the Bring Your Own Device (BYOD) culture, and the digitalization of business operations have led to the storage of sensitive data on an increasing number of remotely connected devices. Consequently, organizations lacking the requisite resources to deploy these devices are investing in digital forensics equipment, software, consultancy services, and other ancillary services. Nonetheless, market growth is impeded by the emergence of proprietary systems and devices offering enhanced security, coupled with a lack of technical expertise in implementing solutions and higher capital outlays.

The surging popularity of cryptocurrencies is fueling growth in the digital forensics market.

Cryptocurrencies, characterized by decentralized, digital assets, rely on cryptographic algorithms for secure data transfer. Unlike traditional currencies, cryptocurrencies are not regulated or issued by central governments, facilitating straightforward transactions between parties. However, the rising prevalence of cryptocurrencies has also led to an uptick in fraud incidents. Cybercriminals exploit vulnerabilities in cryptocurrency systems for financial gain, geopolitical competition, interpersonal conflicts, and reputational damage. The aftermath of cryptocurrency fraud poses challenges in artifact discovery, necessitating the use of appropriate digital forensic techniques to recover critical data lost during storage or exchange. Consequently, cryptocurrencies are increasingly becoming prime targets for cybercriminals, driving the anticipated growth in demand for digital forensics services.

Impact of COVID-19 on the Global Digital Forensics Market:

The global landscape has been significantly affected by the COVID-19 pandemic, leading to widespread lockdowns across numerous nations. In response to the crisis, organizations have swiftly transitioned to digital infrastructure and remote solutions, consequently escalating the demand for digital forensics. Various sectors such as healthcare, manufacturing, finance, logistics, administration, and government have experienced a surge in cyberattacks targeting sensitive corporate data.

Furthermore, lockdown measures have resulted in a notable increase in digital transactions, prompting governments to promote contactless payment methods to curb the spread of the virus. However, this shift has also facilitated unethical hacking and other online crimes. Consequently, the COVID-19 pandemic has amplified the necessity for digital forensics, presenting promising growth opportunities for industry stakeholders in the foreseeable future.

Recent Developments:

• In January 2021, LogRhythm acquired MistNet to enhance its security information and event management (SIEM) capabilities with cloud-based analytics, threat detection, and network visibility. This acquisition enables users to deploy machine-learning-based detection and response functionalities.
• In October 2020, Paraben unveiled the 2.7 edition of the E3 Forensic Platform, which includes support for Slack integration, iOS 14 acquisition and analysis, ExFAT file system analysis, and Android 11 acquisition and analysis.

Challenges in the Global Digital Forensics Market:

Encryption, the process of converting plain text into cipher text, poses a significant challenge in digital forensics.

Encryption algorithms are categorized into symmetric and asymmetric methods. While symmetric algorithms require a single key for data conversion, asymmetric algorithms utilize two keys (public and private). Asymmetric algorithms encrypt plain text using the public key, and decryption requires the corresponding private key. Notable examples of asymmetric algorithms include Rivest-Shamir-Adleman (RSA), the advanced encryption standard, and the data encryption standard.

Data security regulations and compliance standards advocate for the adoption of encryption, tokenization, anonymization, and pseudonymization techniques.

However, ensuring individual privacy rights complicates law enforcement's efforts to regulate encryption practices among users. Consequently, encryption is poised to be a significant barrier, potentially hindering the efficacy of digital forensic tools and constraining market expansion.

Opportunities in the Global Digital Forensics Market:

Corruption, product diversion, and bribery have emerged as significant concerns in the consumer products industry in recent years.

To address these security challenges, companies in this sector are leveraging digital forensic technologies to optimize their business operations. Additionally, the consumer goods industry is witnessing the proliferation of e-commerce as a new distribution channel, leading to increased concerns regarding supply chain fraud, including counterfeiting.

Illicit third-party internet sales channels often offer substantial discounts on branded goods acquired through supply-chain breaches.

The growing emphasis on digitization, Internet of Things (IoT), and advanced technologies presents a multitude of opportunities for the Global Digital Forensics Market on a continual basis.

Global Digital Forensics Market Segmentation: By Component

• Hardware
• Software
• Services

In terms of Component Segmentation, the services segment is poised to hold a substantial share in the market owing to its complementarity with digital forensic hardware and software. These services, provided by major companies such as KPMG and PwC, entail significant expenses primarily associated with skilled labor, licenses, and training. Over time, expertise in system integration, training, support, and consultancy has become indispensable, prompting organizations to either develop these skills in-house or outsource them to proficient service providers.

Global Digital Forensics Market Segmentation: By Type

• Cloud Forensics
• Computer Forensics
• Mobile Device Forensics
• Network Forensics

The computer forensics segment is projected to dominate the market share during the forecast period. This dominance can be attributed to the increasing digitalization of business operations, resulting in the generation of vast amounts of sensitive business and transactional data requiring stringent data protection measures. Computer forensics, being crucial for ensuring data integrity, commands a significant share of the market.

Global Digital Forensics Market Segmentation: By Tools

• Data Acquisition and Preservation
• Data Recovery
• Forensic Data Analysis
• Forensic Decryption
• Review and Reporting
• Others

Forensic data analysis held the largest market share in 2022. Its ability to provide insights and analytical skills supporting informed business decisions and organizational transformation contributes significantly to its market dominance. Moreover, the surge in financial crime necessitates closer scrutiny of firm data, with forensic data analysis aiding in detecting and preventing misconduct or malpractice before it escalates.

Global Digital Forensics Market Segmentation: By End User

• Banking, Financial Services, and Insurance
• Government and Defence
• Healthcare
• Retail
• Telecom and IT
• Others

The Government and Defence sector held the largest market share in 2022 due to the highly confidential nature of the data it handles, making it susceptible to cyber threats and insider misconduct. Ensuring data accuracy and access control is paramount for national security, leading to substantial investments in digital forensics solutions within this sector.

Global Digital Forensics Market Segmentation: By Region

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• Latin America

North America is expected to dominate the market, fueled by the presence of numerous digital forensics companies and the region's proactive approach to cybersecurity. In contrast, Asia Pacific is poised for significant growth, driven by the increasing adoption of cloud environments in industries like BFSI and government, necessitating robust digital forensics capabilities to mitigate cyber risks.

Global Digital Forensics Market Key Players:

1. AccessData Group LLC
2. ADF Solutions
3. Cellebrite Paraben
4. Coalfire
5. Digital Detective
6. LogRhythm
7. Magnet Forensics
8. MSAB
9. OpenText Corporation
10. Oxygen Forensics